Seismic changes hit fund derivatives

earthquake

The global squeeze on bank balance sheets is having a knock-on effect among fund derivatives providers who repackage funds of funds and add leverage for the benefit of their institutional and high net worth clients.

The provision of leverage, which could typically equal two to four times the equity investment in a fund of funds, is a crucial part of the business. But it is also something that credit committees at some institutions have been demanding is scaled back.

Some important players have s

To continue reading...

You need to sign in to use this feature. If you don’t have a Risk.net account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an indvidual account here: